If you want to get technical, give CDI a call. The company provides engineering and information technology (IT) staffing services to customers in such industries as aerospace, biotech, chemical, manufacturing, and pharmaceutical. Its engineering segment includes CDI Government Services, which provides naval engineering, design, and military aviation support services to the US government. Other CDI units include MRINetwork (permanent employment recruiting and temporary staffing services) and AndersElite (staffing services for the UK construction industry). In addition, the company's ITS segment offers IT staffing, testing, help desk, and consulting services.
In mid-2010, CDI made a move to expand through an unsolicited takeover offer for rival RCM Technologies. The all cash bid, valued at $68 million, was rejected by RCM's board of directors. CDI had privately approached the company's board about a possible buyout a month before, but it did not receive any response. In its official rejection, RCM stated the potential buyout was not in its best interests.
Meanwhile, CDI is focused on its most pressing interest: providing staffing services to its customers. The company operates through CDI Engineering Solutions (ES), CDI IT Solutions (ITS), MRINetwork, and AndersElite. The ES segment, representing more than half the company's total revenue each year, offers staffing services in the engineering, industrial, aerospace, and life sciences sectors. In mid-2010, CDI beefed up this segment through the acquisition of L. Robert Kimball & Associates, a firm providing architecture, civil and environmental engineering, and consulting services. The deal opened up new market opportunities for CDI, giving it the ability to serve federal, state, and local government agencies.
The ITS segment brings in about 30% of the company's total revenue. It caters to the automotive, financial services, technology, and business services industries. (In 2010, IBM represented 20% of the its total revenue.)
Like most players in the staffing industry, CDI took a major hit in 2009 as a result of the recession. Its revenue decreased by almost 21%, and it suffered a net loss when compared to 2008's numbers. In order to counter these effects, CDI made a big push to reduce its expenses; as a result, it was able to recognize $50 million in cost reductions for 2009. By the end of 2010, however, the company was still in the red, recording a net loss of almost $11 million. Although its revenues were up, it attributed the continued weakness in the UK construction industry associated with its AndersElite segment as a key driver for the loss.
CDI was established in 1950. The family of chairman Walter Garrison owns about 30% of the company. In early 2011, president and CEO Roger Ballou, who had been the company's leader for almost a decade, retired and Paulett Eberhart was hired to replace him. – less